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This time, it looks like it’s finally over. Guidant’s (GDT) board has accepted Boston Scientific’s (BSX) higher bid. BSX will pay $42 a share in cash, and $38 a share in stock. In my opinion, that’s way too much.

For its part, J&J will get $705 million for Guidant breaking its earlier agreement. BSX smartly stayed a step ahead of regulators by agreeing to sell part of Guidant to Abbott Labs (ABT).

This was a big victory for a couple of hedge funds and lots of lawyers and investment bankers. J&J nearly made a big mistake.

Speaking of bidding war, one of our Buy List stock, Danaher (DHR), will bow out of a bidding war for First Technology. Honeywell (HON) initially agreed to buy the company for 275 pence, then DHR bid 330. Honeywell came back and bid 365, which it’s going to get.

Disney (DIS) agreed to buy Pixar (PIXR) for $7.4 billion. Or more accurately, Pixar agreed to be bought by Disney. Steve Jobs will be the new chairman. Disney is too good a company for its current management.

Posted by edelfenbein at January 25, 2006 10:38 AM